Unfair practice in charging additional foreclosure charges?

Question

I have a car loan with Bank: Loan account number: LABNGXXXXXXXXXX1120 During the time of processing the loan the executive had told me that I can preclose the loan only after 1 year anytime without any preclosure charges. And If I foreclose before 1 year I need to pay 3% charges on remaining principal. I have now completed 1 year 10 months. and when I visited the bank for preclosure, they are charging me 9770/- extra as foreclosure charges at a rate of 5% on the outstanding principal amount. When requested them to wave off or give some concession on the amount. they replied me rudely saying there is no commitment as such in sanction letter and they can not waive-off the charges. Being bank customer for more than 12 years.(savings/dmat/home loan) this as hurt me a lot. Now I am worried on the additional charges. Request you to help me in this regard. 

Thanks
Elvis

Answer 1

Dear Elvis

At the outset, let me clarify that this site is designed and managed by a group of Senior Banking Professionals to assist Bank Customers at large to provide guidance for resolution of any complain/query/grievance in respect of financial services. This site does not belong to any Bank or a regulator, which may please be noted.

It suggested to represent the issue to the Nodal Officer of the bank, requesting for waiver / concession of the pre-closure charges.  You can find contact details of Nodal Officer on your bank's website. In case you do not get desired response, please do not hesitate to write to BO. For address of the Office of the Banking Ombudsman, Area of Operation (jurisdiction) and the procedure for lodging complaint, you may access the website https://bankingombudsman.rbi.org.in/.

RAJA